Examining the negative effects on the economies of oil-exporting Arab countries as a result of the current imbalance in the international monetary system, this paper finds that the imbalance is mainly represented in the continuation of the dollar as the central reserve currency of the Gulf States. As long as this imbalance exists, it postulates, the surpluses achieved by these countries in their balance of foreign payments ends up as dollar-denominated reserves deposited in the US government treasury or as US bonds. In other words, as loans countries with financial surpluses Gulf States give to the richest economy in the world in return for meager interest rates instead of investing them in high-yielding productive projects that could increase demand in the global economy, drive up employment rates, and help protect against crises and instability. This study aims to start a debate about the need for the Gulf countries to take part in efforts to reform the international monetary system, and join developing nations that spend on infrastructure and sustainable development instead of on defense. This paper sees such a move as ensuring that the Gulf States would then participate in reforming global governance and the development of the international monetary system. Gulf countries should seriously consider joining the New Development Bank and the Asian Infrastructure Bank, as well as establish a trans-regional bank between Asian and Arab countries, as a more advanced step.